ex10-2.htm


     

    Exhibit 10.2

     

    
      August
25, 2008

      


      Mr.
Jordan M. Copland

      Entertainment Distribution
Company, Inc.

      825 8th Avenue, 29th Floor

      New York, NY 10019


      Dear
Jordan,

      


      This
letter further amends and restates your offer letter dated December 12,
2006, as amended and restated effective December 27, 2007, to reflect the terms
of your continued employment by Entertainment Distribution Company, Inc.
(formerly, Glenayre Technologies, Inc.) (the “Company”).  You will
continue in the position of Executive Vice President and Chief Financial Officer
of the Company.  This position is located in New York, New York and
reports directly to the Chief Executive Officer and/or Chairman of the Board of
Directors of the Company.  You are responsible for financial planning
and analysis, accounting, SEC reporting and matters related to treasury, tax,
information technology, risk management and investor relations, as well as such
duties and services as normally are associated with such position, which may be
assigned to you from time to time.

      


      Your base
compensation will be $325,000 per annum (the “Base Salary”), which shall be paid
in bi-weekly installments for 26 pay periods per year in accordance with the
Company’s normal payroll practices.  Your Base Salary and performance
will be reviewed on an annual basis each year and your Base Salary may be
increased (but not decreased) in the manner determined by the Company in
consultation with the Company’s Board of Directors (the “Board”) or the
Compensation Committee of the Board.

      


      You will
be eligible to participate in the Company’s Incentive Bonus Plan and other bonus
plans or programs as shall be established by the Board upon recommendations from
management of the Company from time to time for senior executives of the
Company.  In addition, you will be eligible to receive discretionary
bonus awards as the Board may determine in its sole discretion from time to
time.

      


      During
the term of your employment, you will be entitled to four (4) weeks of vacation
in each calendar year at such times as shall be mutually convenient to you and
the Company.  Your vacation will be prorated for each partial calendar
year during the term of your employment.

      


      During
the term of your employment, you will receive a monthly car allowance of $700,
which will cover local driving and parking expenses incurred in connection with
the performance of your duties hereunder.

      


      During
the term of your employment, you may participate in all retirement plans, life,
medical/dental insurance plans and disability insurance plans of the Company, as
in

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      effect
from time to time, to the extent that you qualify under the eligibility
requirements of each plan or program.  Details of our current benefits
plan have previously been provided to you.

      


      In
addition, you will be entitled to a “stay bonus” in an amount equal to your Base
Salary payable in a lump sum if you remain employed by the Company through
September 1, 2008 or, in the event a Change in Control (as defined below)
occurs prior to September 1, 2008, you remain employed by the Company or
any successor to the Company following a Change in Control, through the 90 day
anniversary of any such Change in Control.  If earned, the Company
will pay you the stay bonus within two days after September 1,
2008.

      


      In the
event your employment is terminated by the Company without Cause (as defined
below) or by you with Good Reason (as defined below) before you receive payment
of the “stay bonus” pursuant to the foregoing paragraph, the Company will pay
you, subject to the limitations set forth below, a lump sum severance payment
equal to the amount of your Base Salary in effect on such termination
date.  You also shall be entitled to receive the sum of (1) your
accrued but unpaid Base Salary through the date of
such termination, plus (2) your accrued but unpaid vacation pay
through such date of termination, plus (3) if you are then participating in
the Company’s annual bonus plan, a pro-rated annual bonus for the bonus year in
which you are terminated, which shall be calculated and paid in accordance with
the Company’s normal practices at the end of such bonus year, provided that you
have been employed by the Company for at least six months of such bonus year,
plus (4) any other compensation payments or benefits which have accrued and
are payable in connection with such termination. In addition, the
Company shall continue to provide medical and dental benefits to you and your
dependents for a period of 12 months following such date of termination at the
same levels of coverage and in the same manner as such benefits are
available to you and your dependents immediately prior to such Change in
Control.  Your right to continue medical and dental coverage under
the Consolidated Omnibus Budget Reconciliation Act of 1995 (“COBRA”) shall
begin after the expiration of the one-year period described in the foregoing
sentence.

      


      Following
payment of the “stay bonus” set forth above, your employment may be terminated
by the Company or by you at any time for any reason, including with or without
Cause.  In the event your employment is terminated by the Company or
by you for any reason after payment of the “stay bonus”, you will not be
entitled to receive any of the payments and benefits set forth in the
immediately preceding paragraph, but you shall be entitled to receive the sum of
(1) your accrued but unpaid Base Salary through the date of
such termination, plus (2) your accrued but unpaid vacation pay
through such date of termination, plus (3) any other compensation payments
or benefits which have accrued and are payable in connection with such
termination.  Upon payment of such amounts, the Company shall have no
further payment obligations to you.  You will also have the right to
continue medical and dental coverage as required by the Consolidated
Omnibus Budget Reconciliation Act of 1995 (“COBRA”).

       

      
        
          
          

        

        
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      If a
Change in Control (as defined below) occurs and if your employment is terminated
within three years after such Change in Control for any reason other than
Cause (as defined below), the Company shall pay you, within 10 days
after such termination, in cash or equivalent, a lump sum severance
benefit equal to 250% of your Base Salary in effect on such termination date (or
if the base salary was greater prior to such Change in Control, 250%
of your Base Salary in effect on the date immediately preceding such Change in
Control); provided that, in the event you have received the “stay bonus” payment
above in the calendar year in which such severance benefit becomes payable, the
amount of the severance benefit paid to you shall be reduced by the amount of
such “stay bonus”; and further provided that, if your termination constitutes
resignation for Good Reason as a result of the sale of the assets or equity of
LLC, as defined below, such payment shall be equal to 100% of your Base
Salary.  You also shall be entitled to receive the sum of (1) your
accrued but unpaid Base Salary through the date of
such termination, plus (2) your accrued but unpaid vacation pay
through such date of termination, plus (3) if you are then participating in
the Company’s annual bonus plan, a pro-rated annual bonus for the bonus year in
which you are terminated, which shall be calculated and paid in accordance with
the Company’s normal practices at the end of such bonus year, provided that you
have been employed by the Company for at least six months of such bonus year,
plus (4) any other compensation payments or benefits which have accrued and
are payable in connection with such termination.  In addition, the
Company shall continue to provide medical and dental benefits to you and your
dependents for a period of 12 months following such date of termination at the
same levels of coverage and in the same manner as such benefits are
available to you and your dependents immediately prior to such Change in
Control.  Your right to continue medical and dental coverage under
COBRA shall begin after the expiration of the one-year period described in the
foregoing sentence.

      


      Notwithstanding
any terms to the contrary contained in the Company’s Stock Option
Agreement and the Glenayre Long Term Incentive Plan, upon termination of your
employment for any reason other than Cause or by you for Good Reason within
three years after a Change in Control, all options granted to you under such
option plans shall become immediately vested and immediately exercisable and
shall remain exercisable for a period equal to the lesser of 12 months
following such date of termination or the remaining maximum term of the
option.  Further, upon termination of your employment by reason of
your voluntary resignation, all options granted to you by the Company pursuant
to such option plans which have vested as of the date of such voluntary
resignation shall remain exercisable for a period equal to the lesser of six
months following such date of termination or the remaining maximum terms of the
option.

      


      Notwithstanding
the foregoing, if any benefit or amount payable to you under this letter on
account of your termination of employment constitutes “nonqualified deferred
compensation” (“Deferred Compensation”) within the meaning of Section 409A of
the Internal Revenue Code (“409A”), payment of such Deferred Compensation shall
commence when you incur a “separation from service” within the meaning of
Treasury Regulation Section 1.409A-1(h) (“Separation from
Service”).  However, if you are a “specified employee” within the
meaning of 409A at the time of your Separation from

       

      
        
          
          

        

        
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      Service,
any Deferred Compensation payable to you under this letter on account of your
termination of employment shall be delayed until the first day of the seventh
month following your Separation from Service (the “409A Suspension
Period”).  Within 14 calendar days after the end of the 409A
Suspension Period, the Company shall pay to you a lump sum payment in cash equal
to any payments (including interest on any such payments, at an interest rate of
not less than the average prime interest rate, as published in the Wall Street
Journal, over the 409A Suspension Period) that the Company would otherwise have
been required to provide under this letter but for the imposition of the 409A
Suspension Period.  Thereafter, you shall receive any remaining
payments due under this letter in accordance with its terms as if there had not
been any suspension period beforehand.

      


      For
purposes of this letter agreement:

      


      (1)           “Cause”
means (1) your resignation, except for Good Reason, from the office of Chief
Financial Officer of the Company; (2) dishonesty or fraud on the part of the
employee which is intended to result in the employee’s substantial
personal enrichment at the expense of the Company or its affiliates;
(3) a material violation of the employee’s responsibilities as an executive of
the Company or its subsidiaries which is willful and deliberate; or
(4) the conviction (after the exhaustion of all appeals) of the
employee of a felony involving moral turpitude or the entry of a plea
of nolo contendere for such a felony; provided, that in no
event shall “Cause” include (i) any personal or policy disagreement between the
employee and the Company or any member of the board of directors of
the Company or (ii) any action taken by the employee in connection with the
employee’s duties if the employee acted in good faith and in a manner
the employee reasonably believed to be in the best interest
of the Company and had no reasonable cause to believe the employee’s
conduct was unlawful.

      


      (2)           “Change
in Control” means any of the following: (a) the acquisition, directly or
indirectly after the date of this letter agreement, in one or a series of
transactions, of 25% or more of the Company’s common stock by any “person” as
that term is defined in Section 13(d)(3) of the Securities Exchange Act of
1934, as amended; (b) the consummation of a merger, consolidation,
share exchange or similar transaction of the Company with any
other corporation, entity or group, as a result of which the holders of
the voting capital stock of the Company immediately prior to such merger,
consolidation, share exchange or similar transaction, as a group, would receive
less than 50% of the voting capital stock of the surviving or
resulting corporation; (c) the consummation of an agreement providing for
the sale or transfer (other than a security for obligations of the Company)
of substantially all the operating assets of the Company, including a sale
of the assets or equity of Entertainment Distribution Company LLC, a
wholly-owned subsidiary of the Company (“LLC”); (d) individuals who, as of the date
hereof, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the
Incumbent

       

      
        
          
          

        

        
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      Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board or pursuant to a negotiated settlement with any such Person to avoid the
threat of any such contest or solicitation.

      


      (3)           “Good
Reason” means the occurrence of any of the following events provided you (A)
notify the Board in writing within 90 days following the initial occurrence of
the events that are alleged to constitute good reason and specifying the events
that are alleged to constitute good reason and (B) terminate your employment
within 90 days of the date of your notice if the Company does not cure said
events within 30 days after the date of your notice: (i) any material breach by
the Company of the terms of this letter agreement or any material diminution by
the Company of your authority, duties or responsibilities with the Company as
specified in the first paragraph of this letter agreement;; (ii) any relocation
of your principal office to a location which is more than 25 miles outside of
New York, New York; or (iii) any request by the Company for you to report to
someone other than the Company’s Chief Executive Officer or the Chairman of the
Company’s Board of Directors, except where such request is specifically approved
by you.

      


      The
Company agrees to refrain from making and agrees to cause its subsidiaries and
its and their respective officers, directors, agents and employees to refrain
from making any disparaging, derogatory or negative oral or written statements
to the public or any third party about you, your employment with the Company or
your reputation, standing in the business community or business practices,
during and after termination of your employment with the Company.  You
agree to refrain from making any such disparaging, derogatory or negative
statements about the Company or any of its affiliates, or any of their past or
present officers, directors, agents or employees.

      


      No
representation, promise or inducement has been made by the Company or you that
are not embodied in this letter agreement.

      


      This
letter agreement may not be modified or amended in any way unless in a writing
signed by each of the parties hereto.

      


      Please
confirm the terms and conditions set forth herein by countersigning this letter
in the space provided below.

      


      Sincerely,

      


      /s/
Clarke Bailey

      Clarke
Bailey

      Chairman
of the Board

      


      Accepted
by:  /s/ Jordan
Copland                                       Date:  August 25,
2008                    


      Jordan Copland

       

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